What is the Omega Pharma case? The Omega Pharma case has confirmed that the scheme’s governing documentation and not the Pensions Act minimum funding standard determine the employer’s liability to contribute to defined benefit schemes on wind-up. On 25 July 2014, Mr Justice Moriarty in the Commercial Court handed down judgment in the case of… Continue Reading

Where a scheme is operated on an integrated basis, it reduces the pension entitlements of members to account for their State pension. A bridging pension is a supplemental pension which is sometimes paid to members who retire before the age at which the State pension is payable. Schemes may also reduce the contributions payable by… Continue Reading

We are increasingly asked by overseas clients whether, if they acquire a business or a company in Ireland which operates a DB Scheme in Ireland, they could be liable to the DB Scheme even though the acquirer may not participate in that scheme. UK clients are particularly concerned by this issue given their experiences with… Continue Reading

Overview The recent UK Supreme Court judgment in Re Nortel GMBH (in administration) and others; Re Lehman Brothers International (Europe) (in administration) and others [2013] UKSC 52 (the Nortel Appeal) overturned the decisions of the High Court and the Court of Appeal, which previously gave “super-priority” to liabilities under financial support directions and contribution notices… Continue Reading

The Pensions Board has published a consultation paper on the future regulation of defined contribution schemes in Ireland. The paper sets out the Pensions Board’s concerns with the current system. Those concerns relate, among other things, to the level of scheme costs borne by members, the appropriateness of investment choice, the independence of trustees from… Continue Reading

On 1 January 2014, the age at which the contributory State pension comes into payment will increase from age 65 to 66. On 1 January 2021, it will rise to age 67 and on 1 January 2028 it will rise to age 68. While there are good financial reasons for the State to increase the… Continue Reading

The funding difficulties facing defined benefit schemes in this country at the moment as well as the strengthening of the Pensions Act funding requirements and re-introduction of funding standard deadlines has seen both scheme sponsors and trustees adopt an increasingly more creative approach to satisfying statutory obligations as well as providing a sustainable basis for… Continue Reading

The Social Welfare and Pensions (Miscellaneous Provisions) Bill 2013 was published on 22 May 2013. What does the Bill contain? The Bill provides for the previously announced restructuring of the Pensions Board into a Pensions Authority with the position of CEO of the Pensions Board being recast as that of Pensions Regulator. There will also be… Continue Reading

The current state of funding of DB schemes has pushed many of the sponsoring employers of these schemes to consider how to minimise their defined benefit liabilities and risks. In order for the liability management process to be successful, a number of key stakeholders need to be managed. These are: the trustees of the scheme;… Continue Reading

After much talk over the past 2 or 3 years, at last sovereign annuities have become a reality… nearly. This week, I was one of the speakers at the launch of the first sovereign annuity approved by the Pensions Board. Getting to this point is a major milestone in the long journey towards being able to… Continue Reading

Pension issues can be a major factor influencing merger and acquisition activity. Companies may pull out of deals due to uncertainty around pensions (especially uncertainty over the funding of defined benefit plans). Pension plan deficits are now part of corporate life and how the deficit and the other pension issues will be dealt with needs to… Continue Reading

As more and more sponsors of defined benefit schemes are preparing to terminate contributions to their schemes or are going into receivership, examinership or liquidation, a question which keeps arising for trustees is whether or not they are under a duty to demand payment of the scheme’s deficit. When trustees either know or have a… Continue Reading

The continuing economic crisis sees those with responsibility for pension schemes faced with a number of complex issues. There are a number of core issues which we are seeing consistently arise. These include the following: Check the Power of Amendment Check Employment Contracts Check the Effect of the Change Conflict, Confidentiality and Consultation Obtain Advice

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